Forrester predicts a modest 4% increase in technology spending in Australia for 2024, despite the challenging economic climate. While high inflation, sluggish growth, and rising interest rates cast a shadow across the region, businesses in both Australia and New Zealand are prioritising customer experience (CX) and embracing new technologies.
Customer Experience Takes Centre Stage
Australian and New Zealand firms are focused on fulfilling brand promises and improving customer interactions through innovative technology. This focus on enhancing customer experiences extends beyond digital engagement, aiming to also improve physical interactions.
ESG Reporting Gains Traction
The drive to align brand initiatives with environmental, social, and governance (ESG) reporting is gaining momentum, fuelled by regulations like the Corporate Sustainability Reporting Directive. A significant 34% of respondents from the region consider this move crucial.
Information Technology Priorities Differ
While both countries are embracing technological advancements, their priorities diverge slightly. In New Zealand, enhancing stakeholder experiences tops the IT agenda for 32% of respondents, closely followed by increased experimentation and strengthening IT infrastructure. Conversely, Australian respondents highlight the need to accelerate IT delivery, with infrastructure upgrades identified as a key action for their IT organisations.
AI and Emerging Technologies Remain Key Investments
Despite the economic uncertainties, a substantial majority of respondents in both countries expect increased spending on artificial intelligence (AI) and other emerging technologies in the coming year. 91% of Australian respondents and 81% of New Zealand respondents anticipate greater investment in these areas.
Sector-Specific Focus
New Zealand is particularly focused on solutions supporting its agriculture and food-related exports, while Australia prioritises technologies that empower hybrid work environments, with a particular emphasis on AI tools and data analytics.
A Glimpse into the Future
These insights provide valuable information about the strategic directions of businesses and IT organisations in Australia and New Zealand as they navigate economic headwinds. The objectives highlighted in this forecast will shape the landscape of technological investments and adoption within the region in the year ahead.
About Forrester
Forrester Research is a global market research and advisory firm dedicated to empowering organisations with the knowledge and insights needed to make informed decisions in technology, customer experience, and business strategy. Forrester delivers comprehensive research, data-driven insights, and expert guidance, helping companies navigate the complexities of digital transformation and thrive in competitive markets. Its thought leadership and advisory services are trusted by businesses worldwide, driving innovation and fostering measurable success.
